OMBUDSMAN Rajmanlal Joseph is urging the National Insurance Board (NIB) to be more efficient in ensuring employers are paying their regular contributions for their employees, and try to expedite claims so as to spare retirees from distress.
His remarks came in a section titled "area of concern" in the 44th Annual Report of the Ombudsman (2021) laid in the House of Representatives on March 22 by Deputy Speaker Esmond Forde.
The report said the National Insurance Act mandates an employer to register his employees and unpaid apprentices and to submit statements of contributions.
"Non-payment of employees’ NI contributions by employers is a recurring issue and this office has received several complaints."
The report said 41st Annual Report cited a parliament committee's call for the NIB to improve its "oversight of the collection of contributions from employers" and its, "registration of all employers who are not currently registered or paying the NIS contribution."
The ombudsman urged the NIB to review its system for ensuring employers’ registration and compliance in paying workers’ NIS contributions.
"It is therefore quite clear that the NIB’s Compliance Department which is tasked to handle delinquent employers is not effective."
The Ombudsman urged the NIB to be more aware of the NI Act's enforcement provision against delinquent employers.
The report quoted, “An employer who fails or neglects to pay or effect payment of contribution in respect of any person in his employment who is required to be insured under this Act, is liable on summary conviction to a fine of $4,000 and six months imprisonment and in the case of a continuing offence shall be liable in respect of each person for whom he neglected or failed to pay or effect payment of contribution, a further fine of $100 a day for each day that the offence continues after conviction."
The Ombudsman was upset at the NIB's delays in paying claimants who consequently suffer, quoting a distressed retiree.
"For the past six months, I’ve been coming here, every time you come here they telling you it processing it’s processing that is it.
"You retire now you can’t get your government benefits, you can’t get your NIS benefits.”
The report said the length of time taken to process certain benefits such as retirement benefits was of "grave concern" for the Ombudsman.
"NIB must be cognizant that not all persons who are eligible and have applied for their retirement benefits have financial arrangements in place to sustain them beyond the 90 day period indicated by the NIB for processing these applications.
"Notwithstanding, after decades of diligently making NI contributions with the hope of establishing financial security for their later years, contributors are still subject to undue distress and delays in receiving the retirement benefits to which they are rightfully entitled."
The Ombudsman said the issue was compounded by the fact most elderly persons were no longer able to return to work to receive a monthly income for their basic needs, i
